CIMB Niaga’s 1H22 consolidated net profit up 20.4% y-o-y

KUALA LUMPUR (July 27): CIMB Group Holdings Bhd’s 92.5%-owned PT CIMB Niaga Tbk announced its unaudited consolidated net profit for the first half ended June 30, 2022 (1H22), leaped 20.4% to 2.57 trillion Indonesian rupiah (about RM763.68 million), up from 2.13 trillion Indonesian rupiah a year ago.

According to its financial statement filed with Bursa Malaysia on Wednesday (July 27), CIMB Niaga’s earnings per share for 1H22 was 101.65 Indonesian rupiah against the previous year's 85.54 Indonesian rupiah.

It paid a total dividend of 2.35 trillion Indonesian rupiah in 1H22, twice the amount compared with 1.1 trillion Indonesian rupiah in 1H21.

In a separate statement, CIMB Niaga president director Lani Darmawan attributed the improved performance to strong loans or financing growth, improved fee income, strong cost controls and lower credit provision.

CIMB Niaga reported that its capital adequacy ratio (CAR) and loan to deposit ratio (LDR) closed at 21.1% and 80.9%, respectively, as on June 30.

Meanwhile, total assets stood at 311 trillion Indonesian rupiah as on June 30, which it said is solidifying the bank’s position as Indonesia’s second largest privately-owned bank by total assets.

It added that total deposits reached 232 trillion Indonesian rupiah with the current account and savings account (CASA) ratio rising to 65.7%.

“Current account and savings account balances grew by 16.9% year-on-year (y-o-y) and 7.7% y-o-y respectively, driven largely by the bank’s continuous commitment to deepening customer relationships and enhancing user experience through its digital touchpoints,” CIMB Niaga said.

Total loans stood at 189.7 trillion Indonesian rupiah, contributed mainly from the 15.5% y-o-y growth in corporate banking and 13.8% y-o-y growth in consumer banking, the bank said.

“Mortgages grew by 8.5% y-o-y, while auto loans rose 51.7% y-o-y, including the contributions from the bank’s subsidiary, PT CIMB Niaga Auto Finance.

“In Sharia Banking, CIMB Niaga Syariah maintained its position as the largest Islamic business unit in Indonesia, with total financing valued at 42.3 trillion Indonesian rupiah and deposits at 36.9 trillion Indonesian rupiah as at June 30,” it said.

Lani said the bank continues to innovate its digital customer experience by integrating various products and services into CIMB Niaga’s Super App OCTO Mobile.

“Recently, we launched a digital credit card named OCTO Card in collaboration with three principals, namely PT JCB International Indonesia, PT Mastercard Indonesia, and PT Visa Worldwide Indonesia.

“As a digital credit card integrated in OCTO Mobile, customers can leverage OCTO Card for online shopping at various e-commerce or offline merchants through the Scan QRIS feature, without the need to carry a physical card.

“This is also in line with CIMB Niaga's initiatives in supporting the Sustainable Development Goals (SDGs), one of which is reducing the use of plastic cards,” Lani said.

CIMB Niaga added it will develop digital-based products to complement the offerings at existing branches because 97% of total customer transactions were made through branchless banking channels such as OCTO Mobile, OCTO Clicks, automated teller machines (ATM) and Rekening Ponsel (mobile wallet).

To support its business growth, CIMB Niaga said it continues to improve customer experience by offering a comprehensive suite of products and services through 420 branches (including 34 mobile branches and 37 digital lounges).

As on June 30, the bank’s nationwide network operated 4,432 ATMs (including 942 cash deposit and recycle machines) and 281,596 electronic data capture points.

On Wednesday, shares of CIMB Group Holdings Bhd increased by 0.4% or two sen to close at RM5.22, giving it a market capitalisation of RM54.68 billion.